In 2Q2015, Singapore’s property market saw a surge in number of foreign buyers. Mainly from mainland China and Malaysia, snapping up 234 and 248 private homes respectively. It was also reported a few months ago that there were already signs of foreign property buyers splashing cash on Singapore high-end properties. With the penthouse sale at Le Nouvel Ardmore making the news headlines. And also Marina Bay Suites. Not only these, but Leedon Residence has also seen healthy sales of late. Transacting 14 units in July 2015 alone (ranging from S$2.3 million to S$7.48 million).
This increase in number was likely due to the political situation in Malaysia. And the weakening currency values (Malaysia Ringgit and Chinese Renminbi) for both countries. Therefore, it seems like a logical and sensible move for these prospects to focus on Singapore’s GDP performance. And the strength of the Singapore currency by investing or preserving their wealth here. According to the reports from DTZ Research and the Urban Redevelopment Authority of Singapore (URA), foreign property buyers from China. And Malaysia have a count for close to 50% of all the Singapore property purchases made by non-Singaporeans (1,017 in total) during 2Q2015. This figure is approximately 60% more than what was records show in 1Q2015. But it is still lower than. The total records clocked in 2Q2014 (which was 1,298 units).
Someone mentioned that property buyers from China were probably more active. Due to the plunge of the stock market in China. Which has triggered an increasing level of uncertainty in the nation’s financial resistance of some degree and security. Thus making Singapore appear as a safe house. Especially the high-net-worth individuals. Moreover, if the decline of the renminbi continues. It is expected to be an infuse for more Chinese to buy Singapore properties.
Al Jazeera’s coverage of foreign wealth in Singapore
However, there are more despairing signs coming out from Indonesia and Malaysia. As their currencies continue to cheapen against the US dollar. However, one of the most strong currencies in Asia may be the Singapore dollar. If this stays true, Singapore should go on to attract more funds following out of these nations. Singapore’s high-end residential market will possibly benefit the most as property prices in this segment have recently declined to an enticing level. Another point to note is that this property segment has also all along been seeing the biggest group of Indonesian, Chinese, and Malaysian buyers.